Alert Message

Getting a mortgage just got a whole lot easier

With mortgage rates dropping to the lowest that they have been in over 30 years and the market favoring buyers, now is the perfect time to buy in Frederick. Whether you're investing, moving, or retiring, Earnest can help you figure out how much to spend with an affordable mortgage. Our mortgage calculator can help you decide which deals are right for you.

Find your new affordable home today

Get your dream home at a dream price with the help of a home loan

Whether you're buying a new home for you or your family, Frederick has options that will work within your budget. With homes ranging from $30,000 to $710,000, you'll definitely be able to find something you love and can afford. Homebuyers are able to find mortgage rates at the lowest they have been in over thirty years. Home mortgage rates are now between 3.54 and 3.75 percent.

Use your loan to get your home

Use your loan to get your home

No matter where you are on the homebuying spectrum, you'll find what you're looking for in Frederick and in working with Earnest. There are many things that are considered in a mortgage rate: your loan purpose, purchase price, down payment, and your credit score. Earnest will ensure you get the best possible rate for your financial situation and preferences. Make sure when you look at houses you ask your realtor if there are any relevant discounts: it never hurts to try. Perhaps you already have your dream home in Frederick and you want to refinance your mortgage. Earnest can help you with this. If you need to switch your term from 30 years to 15 years, for example, or from ARM to fixed, we will work with you to determine your best options and show you how much you'll save.

Common Questions About Frederick Mortgage Rates

All The Answers You Need to Settle Down Sooner

Should I choose a fixed or adjustable rate?

It depends how long you expect to stay in the home. Adjustable rates are good for people who may not be in the home long, whereas fixed rates are ideal for people who are confident of settling in.

Do I need a home appraisal?

Probably—in most cases, the homebuyer must use an appraiser to evaluate the value of the home. Appraisal costs vary depending on the value of the property, as well as the state the house is in. Buyers cannot choose their own appraiser—the bank makes the decision.

What is PMI?

Private mortgage insurance (PMI) is required when a homebuyer makes a down payment of less than 20%, or when a borrower refinances with less than 20% equity in the home. PMI fees vary according to your down payment and credit score, and adds a premium to your monthly mortgage payment. Please note, PMI is tax-deductible in 2015 and 2016 for certain income brackets.

What does Loan-to-Value mean?

Loan-to-Value (LTV) is the percentage of your home’s value that your loan represents. When refinancing, the calculation is simply the loan amount divided by the appraised value. When buying a home, the LTV is found by dividing by either the purchase price or appraised amount, whichever is lower. When the LTV is less than 80%, the lender generally requires PMI.

For example:

Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%

What are closing costs?

Closing costs are standard fees associated with a real estate transaction. You will typically pay about 2-5% of the purchase price in closing costs—the exact amount depends on where you are buying (or refinancing), as well as number of extra fees involved in your particular transaction. Earnest charges no lender fees, so the borrower is only responsible for 3rd-party fees.

What should I consider before refinancing my mortgage?

Refinancing your home loan is an attractive option when rates are low. A simple rate and term refinance can help you lower your monthly payment and potentially eliminate your PMI premium, as long as you have built up enough equity in the home. You might also use a cash-out refinance to access some of the equity you’ve built up in the home (which may result in a higher monthly payment on your new loan).

However, keep in mind that refinancing a mortgage does involve several fees (closing costs). Before refinancing, you should calculate the ‘break-even’ point at which your refinanced loan makes up for the closing costs. If you plan to leave your home before this time, it’s better to stay with your current mortgage.

Knowledge Is (Buying) Power

Further Resources from the Earnest Blog

People around a computer

The intelligent home loan

When it comes to finding the right home loan, Earnest works hard to ensure that the process pain-free. We use an industry-leading and intuitive online-only application (meaning most times no scanner or fax machine required), a 5-star client service team, and a unique rolling pre-approval that stays current while you track down that perfect home. At Earnest, the home loan process is like no other.